Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders $160 per case Inventory holding cost $45 per case at end of quarter Hiring employees = $40 per case Terminating employees $80 per case Quarter Forecast 1,900 1,200 1,500 1,000 Subcontracting cost $70 per case Unit cost on regular time = $30 per case Overtime cost $20 extra per case Print Done Capacity on regular time -1,900 cases per quarter John's job is to develop an aggregate plan The three initial options he wants to evaluate are: Plan A a strategy that hires and fires personnel as necessary to meet the forecast. Plan B a level strategy. Plan C a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers) Hiring and Layoff Plan Hire Quarter Forecast Production 1,300 (Units) Layoff (Units) 1 1,900 2 1,200 3 1,500 4 1,000 The total cost, including normal time labor costs, for this hiring and layoffs plan is $(enter your response as a whole number) Construct a plan that holds employment steady (level strategy) by producing the average forecast for all four quarters (enter your responses as whole numbers) Level Plan Ending Quarter Forecast Production Inventory Shortage (Units) 1,300 1 1.900 2 1,200 3 1,500 4 1,000 The total cost including normal time labor costs for this laval nlan io enter nur mennnen ne Hire Layoff (Units) whole nuimhnel Construct the level plan that holds employment steady at 1,100 plus subcontracting (enter your responses as whole numbers). Quarter Forecast Production Level Plan Subcontract (Units) Ending Hire Layoff Inventory (Units) (Units) 1,300 1 1,900 1,100 2 1,200 1,100 3 1,500 1,100 4 1,000 1,100 The total cost, including normal time labor costs, for this level plan is $(enter your response as a whole number) b) If you are John's boss, the VP for operations, which plan do you implement and why? OA. Plan A, as it is the highest cost and provides steady employment for the employees OB. Plan C, as it is the lowest cost and provides unsteady employment for the employees OC. Plan B, as it is the highest cost and provides steady employment for the employees OD. Plan C, as it is the lowest cost and provides steady employment for the employees. OE. Plan B, as it is the lowest cost and provides steady employment for the employees